Futures on MPEx

Monday, 10 December, Year 4 d.Tr. | Author: Mircea Popescu

I've been trying to get future contracts with physical delivery on MPEx for close to a year now. Fact of the matter is, BTC isn't quite there yet.

So, as a halfway step and in an effort to get it there, MPEx now offers BTC-settled futures contracts on the followingi :

All contracts will settle during the last Friday of each month (up until midnight GMT) on the reference of the close price of the respective contract on the previous dayii and the BTC/USD 24 hour volume-weighted average then current.

Anyone can create new contracts by depositing BTC as collateral. Currently collateral requirements are 180% of the last MPEx settlement of that contract (so a contract that settled for 50 will need 90 in collateral to create). There's a 2% non refundable fee levied on all newly created contracts, this pays for insurance (users are not liable outside of their deposited collateral). Once contracts settle the collateral is returned minus the value of the contracts created. Both the collateral requirements and the fee are subject to change as we collect more data and are able to make more precise estimates in more confidence.

Be warned that buying any future contract is in effect divesting BTC. You may wish to insure yourself against currency risk for this reason.

More futures may be added in the future (heh), express your preference. Also, MPEx is looking for more marketmakers on pretty much all these, so if you know a lot about futures and have a decent chunk of BTC to back you up we want to hear from you.

Have fun.

———
  1. Obviously there's no relationship between the respective exchanges and MPEx - they're not quite cool enough yet. []
  2. So for instance this month contracts will settle on the 28th on the basis of the close on December the 27th. []
Category: MPEx
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6 Responses

  1. Just to remind everyone CoinBr.com provides reliable platform for accurate MPEx bookkeeping, developed and thoroughly tested since MPEx was beta. We offer full range of services, from support and development for marketmakers to online brokerage for end-users.

  2. Mircea Popescu`s avatar
    2
    Mircea Popescu 
    Monday, 10 December 2012

    I've even forgotten MPEx was ever in beta.

  3. Mircea,

    Can you write up a tutorial on the whole futures thing (with an emphasis on your market), and then post it to Reddit? I am having trouble understanding this and I am sure many other potential customers would be interested, were not for the barrier of knowledge.

  4. Mircea Popescu`s avatar
    4
    Mircea Popescu 
    Tuesday, 11 December 2012

    Alrighty.

  5. Mircea Popescu`s avatar
    5
    Mircea Popescu 
    Tuesday, 11 December 2012

    Here you go : http://trilema.com/2012/futures-simply-put/

  1. [...] ———This covers approximately 17 days, seeing how futures were introduced on the 17th of the current month. [↩] Rubrica: MPEx Puteti urmari raspunsurile prin fluxul RSS 2.0. Puteti lasa un [...]

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